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Summary of Interpretation No. 37

Accounting for Translation Adjustments upon Sale of Part of an Investment in a Foreign Entity—an interpretation of FASB Statement No. 52

Summary

Upon sale or complete or substantially complete liquidation of an investment in a foreign entity, FASB Statement No. 52, Foreign Currency Translation, requires that the accumulated translation adjustment component of equity related to that investment be included in measuring the resulting gain or loss. Members of the Board's advisory group on implementation of Statement 52 and others have asked the Board to clarify the application of that requirement to a sale of part of an investment. This Interpretation indicates that the prescribed accounting applies to an enterprise's partial, as well as complete, disposal of its ownership interest.

This Interpretation is effective for transactions entered into after June 30, 1983.